Stop being fooled by those flashy indicators! The real tools that can help you make money in the crypto world are so simple that they can slap those who play with complex analysis in the face.
When I first entered the crypto world, I was like an idiot staring blankly at the K-line — I got nervous when the MACD turned, and I trembled when the RSI went into overbought territory. What was the result? Three years, a full three years! Not only did I lose all the hard-earned money I saved from my job, but I also racked up a huge amount of online debt, and even the aunt selling buns downstairs dared to glance at me with a sympathetic look.
But now, I bought a 1800 square meter villa in Shenzhen Qianhai, with a private swimming pool. Do you think I'm relying on some profound theory? Nonsense! It's just a few technical indicators that even four idiots can handle, combined with a few ruthless practical tactics. Today, I’m saying this: even if you’re a complete novice who just downloaded the exchange, after reading this, you can immediately take a sickle to cut the chives — these few tricks helped me avoid the ghost gate of liquidation three times and firmly gnaw off five waves of doubling profits.
1. SAR indicator: a lifesaver for beginners; buy and sell points are simple enough not to require much thought.
Some people think that the more complex the indicators, the better; that's pure nonsense! The SAR is like a hidden master among commoners. What does it look like? Just a series of small dots following the price; if the price is above the dots, it's rising, and if it's below, it's falling. Can't learn it in five minutes? You better not touch the cryptocurrency world.
Using SAR to determine market direction is ten times more reliable than MACD.
When the price is above the SAR point (the dots are underneath the K-line), it's a bull market. Who dares to sell at this point? That's just foolish! Even if there are sharp pullbacks in between, as long as it doesn't break the SAR point, hold on tight. In 2021, Ethereum soared from 2000 to 4000, with the SAR point sticking like a stubborn adhesive below. I relied on 'not selling unless the point is broken' and earned an extra 1 million, enough to buy a Porsche Cayenne.
Once the price drops below the SAR point (the dots jump directly to the top of the K-line), the bears start to feast; at this point, you must sell! Don't hesitate for a second! Last year, Bitcoin dropped from 69,000 to 30,000, and when the SAR point was at 50,000, it flipped above. I sold all my positions, and when it halved afterward? That had nothing to do with me.
Remember these two 'angle' signals to help you avoid 80% of the pitfalls.
If the angle of the SAR point moving upward exceeds 45 degrees, it indicates a strong rise; selling at this point is like throwing money into a pit (in 2023, SOL rose from 20 to 100, with the SAR point almost vertically flying upward; anyone selling would be foolish).
If the angle of the SAR point moving downward exceeds 45 degrees, it indicates a strong drop; trying to catch the bottom? You might end up losing everything (in 2022, during the LUNA collapse, the SAR point angle was nearly 90 degrees; anyone trying to catch the bottom is now seeing grass grow on their grave).
Key warning: SAR is useless in choppy markets (the dots bounce back and forth); who dares to act? That's just giving away money! Wait until the trend is clear before entering — it excels at catching major trends; in choppy markets? Let it be!
2. Support and resistance levels: Understanding these two points can conservatively increase your profits by 30%.
Many people buy cryptocurrencies without knowing when to sell, and after selling, they don't know when to buy again. Simply put, it's a lack of understanding — there are just two points to consider: support level (the point where prices stop falling) and resistance level (the point where prices stop rising).
Once a support level is broken, it immediately becomes a resistance level; once a resistance level is broken, it immediately becomes a support level.
For example, if a coin fails to break through 6,800 three times, that becomes a resistance level; later, if it breaks the support level of 6,000 with huge volume, then 6,000 becomes a new obstacle — thinking it can rise again? The trapped positions can turn you into Swiss cheese.
When I was trading FIL last year, I relied on this pattern: the 40-dollar level held three times, and I went all in at 40 dollars every time. When it rose to the 50-dollar resistance level, I sold, making 60% profit after three rounds — it was that simple.
Determining the authenticity of a breakout depends on the trading volume — this is a hard rule!
When a resistance level is broken, the trading volume must be more than double the usual; this is a real breakout, and it's correct to increase your position. No volume? It's fake! Run quickly! When BTC broke 40,000 this year, the trading volume was three times the usual. I went all in, and it later rose to over 50,000, netting me a profit of 200,000. It was that straightforward.
3. Bollinger Bands: specifically designed for sideways markets; must be checked before a trend change.
Sideways markets are the most frustrating: buy and it drops, sell and it rises. But Bollinger Bands can tell you in advance that a storm is coming — it's like a rubber band; when it narrows, it's building up for a big move, and when it opens, it's time to act!
When the Bollinger Bands narrow to almost form a single line, something big is about to happen.
When the price is sideways, and the Bollinger Bands' upper, middle, and lower bands are compressed into a cluster, it indicates that both sides are exhausted and a life-or-death decision is imminent. Who dares to leverage at this point? You won't even know how you died! Don't do short-term trades; the fees won't cover your losses. Wait for it to break decisively before acting — the larger the breakout, the more intense the following market (in 2023, Bitcoin was sideways for a month; after the Bollinger Bands narrowed, it surged 30%, and those who missed it were kicking themselves).
When the bands open wider, look at your position to decide whether to go long or short.
When the upper Bollinger Band opens wide and then begins to contract, it's a sell signal (when the price has tripled, and the Bollinger Bands have opened to the maximum, then suddenly narrow, it's strange if the price doesn't drop afterward).
When the lower Bollinger Band opens wider, and the price is pushing upward from the middle band, it's a buy signal (when the price has dropped 50%, and after the Bollinger Bands narrow, it suddenly opens, pushing upward; buying at this point has an absurdly high win rate).
A reminder: Bollinger Bands react slowly (they only move when prices move), so don't expect to use them to predict reversals; they are only good for determining whether trends can continue.
4. Trading volume: trading volume is the real deal; everything else is just market maker nonsense.
How many people are fixated on the rise and fall of K-lines but fail to notice the trading volume (the pile of red and green bars below)? Let me tell you, 90% of the so-called sharp rises and falls in the cryptocurrency world are dictated by volume; everything else is just market makers drawing charts to trick you out of your money!
Remember these four phrases; they are more useful than learning a hundred indicators:
High-volume increases at high prices must lead to a drop: when the price skyrockets (for example, it has increased fivefold), and suddenly trading volume explodes (the bars are three times higher than usual), no matter how beautiful the K-line looks, immediately sell! Not selling means waiting for death (the market maker is unloading while you still consider it a treasure).
Buying during a volume spike at low prices: When the price has dropped significantly (e.g., down 70%) and the trading volume suddenly increases without making new lows, it indicates that big funds are entering. Buy in batches (when Bitcoin dropped to 15,000 in 2022, I increased my position and made three times my investment, which felt justified).
A price increase without trading volume is a deception: the price has risen, but the trading volume is stagnant (the bars are still short), which likely indicates that the market maker is playing with themselves. Prices rise quickly and fall even faster; entering at this point makes you the one left holding the bag.
Divergence in volume and price means it's time to run: when the price reaches a new high but the trading volume is lower than the last peak (the bars have become shorter), it indicates that buying pressure is lagging. Sell quickly (when Bitcoin surged to 69,000 in 2021, the volume was significantly lower than the previous high. After I sold, I watched it plummet and felt great).
5. Finally, here's a trading method that 'even pigs can learn': beginners can just follow along.
Linking all these tools together creates a process that is simple enough not to require much thought.
Use SAR to determine direction: if the price is above the SAR, only go long; if below, only go short — don't hesitate!
Using support/resistance levels to find entry points: close to the support level + SAR below, buy; close to the resistance level + SAR above, sell; it's quite precise.
Use Bollinger Bands to wait for the right moment: when the market is sideways and the Bollinger Bands are narrowing, wait for the breakout; when in a trend and the Bollinger Bands open, act decisively in that direction.
Using volume to verify authenticity: check the trading volume before buying; if there's no volume? Get lost! If there is volume? Go for it!
I used this method last year, trading SOL four times, earning 15%-30% each time, which added up to more than double — complex indicators will only slow you down; simple rules allow you to act decisively.
In conclusion: the core of making money in the cryptocurrency world is 'simple + decisive action.'
From being liquidated to living in a villa, I've learned one principle: there are always opportunities in the cryptocurrency world; what is lacking are methods that allow you to execute decisively. SAR, support and resistance, Bollinger Bands, and trading volume... these things may seem simple but can help you avoid most pitfalls.
Stop learning flashy tricks from those so-called 'experts.' The methods that truly make money always have a bit of a down-to-earth feel. Remember: if you can execute simple rules consistently, you are the reaper; otherwise, you'll always be the chaff being cut down! Open your trading software now and get started!
Trading cryptocurrencies means repeating simple actions over a long period, consistently using one method until you master it; trading can be like any other profession, where practice makes perfect, allowing you to make every decision without hesitation.
This year marks my twelfth year trading cryptocurrencies. I invested 10,000 and now use trading to support my family! I can say that I've tried 80% of the methods and techniques in the market. If you want to treat trading as a second profession to support your family, sometimes listening and observing more can reveal things outside your understanding, which can save you at least five years of detours!
Wen Jing focuses on ambushing Ethereum contracts, and the team still has spots available for quick entry #鲍威尔发言 $ETH
